But how do you know which one you should choose for your formation?
With this MyCorporation vs LegalZoom comparison, all the information you need to make a decision — from commonalities to major differences — is laid out in a convenient fashion. Hopefully, this will make your choice a bit easier!
MyCorporation and LegalZoom are two of the top LLC formation services in America, and they’re both solid choices to form your new company. They’re both easy to recommend, but LegalZoom has some advantages.
Most importantly, LegalZoom’s pricing is more affordable than MyCorporation’s, even for very similar services. Furthermore, LegalZoom has extended customer support availability, which MyCorporation doesn’t.
Important Note: The prices listed below for MyCorporation reflect the final prices after their required shipping fee on all packages.
If you would like to learn more about these two service providers before making your decision, read on to discover all the relevant details!
6 Things They Have In Common
1) Affordable: Both of these LLC services are hundreds of dollars cheaper than hiring an attorney to draft and file your formation documents. It’s a nice middle ground between the formality of a lawyer and the hassle of the DIY route.
2) Customer Support: MyCorporation and LegalZoom have customer support systems that can really come through in a pinch. Anytime you have a question, or you run into some unexpected trouble, all you have to do is pick up the phone.
3) Experience: These companies both handle high volumes of clients. With millions of customers served each, LegalZoom and MyCorporation are two well-oiled LLC service machines.
4) Additional Services: LegalZoom and MyCorporation have dozens of other services available. If you need a registered agent, or help with anything from foreign qualifications to annual reports, these companies have the resources to assist with those and many other requirements.
5) Satisfaction Guarantees: Both MyCorporation and LegalZoom offer satisfaction guarantees. If you’re unhappy with your LLC service for any reason, all you have to do to get a refund is ask for one. No questions asked!
6) Educational: LegalZoom and MyCorporation both have online learning centers that are absolutely stuffed with information about business formations, ongoing compliance issues, payroll services, and more.
Would you rather pay $79 or $133 for similar services? We assume your answer to this question is the same as ours. While pricing is always an important factor, it isn’t everything, so let’s take a look at some more head-to-head categories to see if MyCorporation can close the gap a bit.
Before we move on, we will mention that MyCorporation currently has a 50% off business formation service voucher available on Yelp, cutting its pricing down to roughly $84 when you factor in shipping.
These two companies offer quite similar base-rate LLC formation packages, with the only real difference being LegalZoom’s inclusion of a banking resolution to help you open business checking and savings accounts. However, if you spend an extra $25 to jump from MyCorporation’s $133 package to their $158 package, you’ll receive a year of their fully managed annual report service, which is a solid value.
On the surface, this is another advantage for LegalZoom, as the included packages in each company’s base-rate LLC formation package give them a slight edge. However, MyCorporation’s inclusion of an annual report in the $158 package is worth noting.
Both of these providers are highly experienced. MyCorporation opened in 1995, and they’ve served more than a million businesses since then. LegalZoom started offering online business services in 2001, and they have more than 2 million business clients.
MyCorporation’s service department gets rave reviews from customers, as they frequently thank their support agents by name in their online reviews. Their customer service hours run from 10:30 am to 7:30 pm ET Monday through Friday.
At LegalZoom, their support gets somewhat mixed feedback. Some customers find their agents to be helpful, while some others see room for improvement. Honestly, this is a common issue for companies of their size and reach — the more reps you have, the higher the chance some of them might not be ideal hires.
One area where their customers seem to agree is how much they like LegalZoom’s extended support hours, as they answer the phone from 8 am to 10 pm ET on weekdays, and they also take weekend calls from 10 am to 7 pm ET.
With LegalZoom, processing times vary depending on which level of service you purchase: Economy (30 business days), Standard (15), or Express Gold (7-10). On the other hand, MyCorporation’s turnaround times vary based on your state of formation, as well as whether you choose to expedite your filing or not. In short, LegalZoom is faster in some states, while MyCorporation has them beat in others.
Both LegalZoom and MyCorporation have status pages where you can view current info about your order. They’re not the fanciest order tracking tools in the industry, but they are effective.
Registered Agent Service
Every LLC in America is required to designate a registered agent, which is a person or business entity that receives important document deliveries (like service of process) from your state government, informs you of the receipt, then forwards the documents to you. This is so crucial because the state needs to have a reliable means of contacting your business at any time.
LegalZoom charges an annual fee of $299 for registered agent service (or $249 for your first year if you add this service to your LLC formation order), whereas MyCorporation’s service costs just $120. Also, MyCorporation includes a full year of registered agent service in both their Deluxe ($258) and Premium ($358) LLC service packages. LegalZoom does not include registered agent service in any level of LLC formation package.
MyCorporation has about 400 reviews available online, and nearly all of them are positive. As we mentioned earlier, many of their customers have highly complimentary things to say about MyCorporation’s support agents.
LegalZoom has more than 6,000 reviews available, and its reputation for customer feedback has improved significantly in the last few years. LegalZoom used to have a mixed bag of reviews, but recently, their feedback has become much more heavily slanted toward positive reviews.
Ease of Use
Both of these companies sell products and services that are quite simple to use, which is one of the biggest selling points they have. They also each have fully featured and user-friendly websites.
MyCorporation and LegalZoom both offer quite a few additional business services that can make your life much easier as an entrepreneur, and they provide many of the same services as well. For instance, you can purchase registered agent service, foreign qualifications, EIN acquisition, annual reports, and more from either LegalZoom or MyCorporation.
However, each of these companies has some exclusive services that you can’t order from the other one. MyCorporation offers some branding services like promotional products and apparel, retail packaging, and print marketing. Meanwhile, LegalZoom has quite a few exclusive services of their own, largely revolving around the fact that they provide personal services in addition to business services, so they can help you with things like last will and testament, divorce papers, and power of attorney.
Which LLC Service Should You Choose?
LegalZoom and MyCorporation are both legitimate and capable companies that are worthy options for LLC service. We realize that some of you may still be undecided about which one you’d like to use, so let’s look over a couple of scenarios where you might prefer one over the other.
➥ Choose MyCorporation if You Are:
Do you want to take advantage of the 50% off LLC formation voucher MyCorporation offers on Yelp? Do you want annual report service bundled in with your LLC formation? These are a couple of the most common reasons people choose MyCorporation over LegalZoom.
➦ Choose LegalZoom if You Are:
Is experience a top priority? How about brand power or customer volume? Do you want to use the company with the lower price points? If these items are important to you, LegalZoom should be a nice fit.
Frequently Asked Questions
Got questions? We’ve got answers.
If I Decide to Use LegalZoom, Which Package Should I Choose?
The best LegalZoom LLC formation package is their Economy package for $79 (plus state fee). This package includes the basics of formation, along with a banking resolution to help you open a business bank account.
However, their $329 Standard and $349 Express Gold packages don’t provide quite enough value considering what you get in the way of features.
Does LegalZoom Handle Extra State Requirements Like New York Publication?
While some of their competitors do handle state-specific requirements like publication, LegalZoom does not.
While you will have to take care of your own publication requirement if you’re forming an LLC in a state that requires it, LegalZoom does take care of some less complicated state requirements, like Alabama’s name reservation. For what it’s worth, MyCorporation does not offer publication services either.
If you’re looking for a company that will handle this step on your behalf, we recommend ZenBusiness or BizFilings. If you’d like some more information about companies offering New York LLC publication services, check out our guide on this topic.
Which Service Has Fewer Upsells?
MyCorporation hardly has any upsells at all, as they do have a list of optional services on their order form, but it’s not presented in a pushy manner. LegalZoom, however, goes pretty crazy with the upsells.
When filling out their order form for LLC service, they attempt $1,080 worth of upsells before you even reach the package selection screen.
Does Either of These Services Have a Refund Policy?
MyCorporation has a reasonable refund policy, as they will grant refunds as long as you request one within 60 days of your purchase date.
Depending on the specifics of your situation, they may charge you a $25 processing fee, so you might want to check with them to see if this fee would apply to you or not.
LegalZoom has a 100% satisfaction guarantee that is one of the best refund policies in this industry. Like MyCorporation, they also give you 60 days to request a refund, but LegalZoom has no processing fees, so they definitely have a small advantage in this category.
Which LLC Formation Website Is Faster?
These companies have entirely different methods for determining turnaround time estimates, and depending on which state you’re forming in, one or the other could be significantly faster.
MyCorporation bases its processing times on the capability of each state to process formations, which means that in some states they can have your LLC formation completed in just a few days, but in other states, they’ll take several weeks.
LegalZoom’s processing times don’t depend nearly as much on your state because they instead base these estimates on which level of LLC service you buy from them. Their Economy package takes 30 business days, while the Standard package takes 15 business days, and the Express Gold package can be completed within 7-10 business days.
Can I Just Form an LLC On My Own, Without a Service?
You sure can, and plenty of entrepreneurs do form their own LLCs in every state, without any assistance from professional services.
While you do always have this option, we would simply like to mention that we don’t typically recommend the DIY route because each state has its own rules and regulations for LLC formations, so it can be a bit of a hassle to learn the details of your state’s requirements.
Also, the DIY option doesn’t provide the invaluable peace of mind we get from using a service like MyCorporation or LegalZoom, because we trust their expertise to get the job done right.
LegalZoom and MyCorporation are two of the most popular LLC formation services available, and they both have plenty of strong attributes.
We wouldn’t blame you for preferring one over the other — either way, you’re using one of the best companies in the industry.